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Belgian Court Gives Life to Herbalife

December 3, 2013

Overturns lower court ruling on business model.

The Belgian legal system has voted (again) and that's good news for beleaguered Herbalife. A judgment by a Belgian Appeal Court states the company’s sales model is in full compliance with Belgian law. This judgment overturns a previous ruling by the lower court, in response to claims brought by Belgian consumer organization Test-Aankoop, that Herbalife was operating a pyramid scheme.

For its part, Herbalife executives insist that the first judgment contained factual errors and was based on misinterpretations of its direct-selling sales method, and was confident that the original judgment would be overturned on appeal.

The company said it will continue to focus on supporting its independent distributors and their customers in Belgium, and the company remains committed to an open and transparent relationship with those distributors and customers, as well as regulatory authorities and all other stakeholders.

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